FOMC Minutes See Further Tightening

Ferris, Craig T.; McConnell, Alison L.
February 2005
Bond Buyer;2/24/2005, Vol. 351 Issue 32077, p2
Trade Publication
The article reports on the indications by the members of the Federal Open Market Committee (FOMC) during discussions at their February 1-2, 2005 meetings that further tightening of monetary policy of the U.S. is likely in the coming months. All members agreed the economy appeared to be expanding at the same moderate pace after the last few months, but the outlook justified an increase in the federal funds rate to 2.5% from 2.25%. FOMC members concurred that output appeared to be growing at a moderate pace despite the rise in energy prices, that labor market conditions continued to improve gradually and that inflation and longer-term inflation expectations remained well contained.


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